Oregon’s significant ocean energy potential and marine resources have made the State a leader in promoting wave energy development while protecting coastal communities and fisheries.
Oregon has invested in this wave energy effort. The non-profit Oregon Wave Energy Trust (OWET) funds independent research and development under the state’s Oregon Innovation Council, fostering growth and evaluation of wave energy development potential on Oregon’s shores.
The National Northwest Marine Renewable Energy Center (NNMREC), one of three centers
nationwide, was founded in 2008 to facilitate technology development, inform regulatory and policy decisions, and close key gaps in understanding. The Oregon State University branch is exclusively responsible for wave energy. Currently, the Center is developing a mobile Ocean Test Berth (MOTB) for deployment in 2012 off the coast of Newport. The Test Berth will give wave energy conversion devices a power launch pad, with the infrastructure required to test and validate devices that can be used across a broad swath of ocean landscape.
A collection of state agencies formed the foundation of a landmark settlement with Ocean Power Technologies (OPT) in July 2010 for the Reedsport project2. Stakeholders along with state and federal agencies approved resource study plans and conditional placement of 10 wave energy buoys off the mouth of the Umpqua River, more than two miles from shore. OPT is seeking state authorization and a federal license for this 10-buoy development at Reedsport. A single test buoy that OPT intends to pilot at this location is under construction at Oregon Iron Works. A Coos Bay barging company expects to tow the device for anchoring in spring 2011.
With the Reedsport project, Oregon has built a coordinated regulatory pathway for the next generation of marine energy developments. In November 2009, the Land Conservation and Development Commission approved a new Part 5 of the Territorial Sea Plan that broadly governs marine renewable energy development. The hope is that by extensively mapping the current resource values, fishing, crabbing, and recreational activities, Oregon will be able to make more informed renewable energy siting decisions.
Large-scale federal grants have changed the funding landscape in Oregon. The state’s wave energy sector may benefit from federal grants for study-framework planning, the Reedsport project, the OSU Center, and other new industries and device development.
Solar
Solar energy is Oregon’s largest renewable energy resource. Northwestern Oregon receives roughly the same annual solar resources as the U.S and Europe. The eastern and southern parts of Oregon receive roughly the same annual solar resource as that of northern Florida.
There are three primary ways in which this energy is harvested: as direct light into buildings for light and heat, to heat water using roof-mounted collectors, and to convert sunlight to electricity using photovoltaics (PV). Each solar harvesting approach is unique in its technology and market constraints. Using solar directly in buildings as daylight and heat can improve occupant comfort and reduce
energy needs by 10 to 30 percent. The life-cycle cost can be lower than conventional energy sources if solar is installed when the building is constructed.
Solar Electricity—Photovoltaics (PV) in the Residential Market
The residential PV market experienced significant growth in 2010. In 2007, there were 230 residential tax credits issued for PV systems statewide. In 2009, there were almost 400 tax credits issued. In 2010 there will likely be more than 1,000 tax credits issued. Figure 13 demonstrates the growth in the number of systems installed statewide over the past five years.
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Figure 13: Installation of residential solar electric systems has increased in Oregon.
There are many factors that can be attributed to the expansion in the residential PV market in Oregon. The combination of state and federal tax credits with cash incentives offered by the Energy Trust of Oregon has greatly reduced the cost of these systems. Long-term support for PV installations within the state has allowed the local industry to expand, mature and streamline costs. There are currently 169 tax credit-certified solar technicians across the state installing residential solar energy systems. In 2007, there were 54 tax credit-certified solar technicians. The presence of large PV manufacturing facilities in the state, such as SolarWorld, has also raised the profile of the technology.
Declining System Costs
The primary factor increasing the number of PV systems installed in the state is declining system cost. In 2007, the average residential PV system in Oregon cost $8.04 per DC Watt. In 2010, the average system cost is $6.70 per DC Watt with many systems being installed for less than $6.00 per DC Watt. Figure 14 demonstrates the average statewide PV system cost per DC watt in the four years.
Solarizing Oregon
Another factor increasing the number of residential PV systems installed in Oregon have been bulk purchasing agreements organized by cities and neighborhood associations. These efforts commonly known as “solarize” programs have been organized in Portland, Beaverton, Salem and Pendleton.
Photo 4: City of Pendleton Solarize Program
Alternative Incentive Structures
In June 2009, the Oregon legislature passed House Bill 3039 directing the Oregon Public Utility Commission (OPUC) to create a Volumetric Incentive Rate (VIR) pilot program, often referred to as a feed-in tariff. The VIR was established to evaluate the effectiveness of a performance-based
incentive for promoting photovoltaic installations. The original law was amended with House Bill 3690 (2010) which provided clarification on system size definitions and established the ability to provide an incentive for “the non-energy attributes of electricity.”
The pilot VIR payment is limited to ratepayers in PGE, Pacific Power and Idaho Power territories. The program has targets to install 25 megawatts (MW) of capacity by 2015. Of this, 75 percent of the capacity is to be for residential and small commercial projects up to 100kW in size. The VIR was launched on July 1, 2010 with VIR rates set between $0.65 per kWh and $0.55 per kWh. The
allocated capacity was reserved in less than 30 minutes. The second round was launched on October 1, 2010 with rates reduced by 10 percent. The second round was fully allocated within 15 minutes. The primary difference between the pilot VIR program and the state energy tax credit programs is the unit that is measured to calculate the value of the incentive. The Residential Energy Tax Credit (RETC) program provides a capacity-based incentive for photovoltaic system installations. The incentive is calculated on a $/watt basis based on the nameplate capacity of the PV system. The RETC incentive is paid out over a maximum of four years. The VIR program provides an incentive on a $/kWh basis based upon the actual metered energy output of the system. The VIR incentive is paid over 15 years and provides incentives for system longevity and performance.
Development of the VIR program brought to light potential conflicts with the Federal Energy
Regulatory Commission (FERC), which has jurisdiction over the rates that utilities can pay for energy. The creation of the VIR payment was seen as potentially violating FERC’s jurisdiction. Noting that issue, the OPUC created a program where participants are not allowed to sell surplus energy to the utilities. Instead the utilities will only provide the VIR payment for energy that is generated and consumed on-site. This “net metering” approach applies to systems up to 100kW in size and prohibits payment for surplus energy generated by a PV system over the course of a year.
Large Systems in the Volumetric Incentive Rate (VIR) Program
The pilot VIR has limited capacity for larger scale PV installations up to 500kW in size. The rates for the large-scale projects is determined through a Request for Proposal (RFP) and bidding process where project developers submit competitive rates in an attempt to win a VIR payment contract. The bidding process is designed to establish a VIR rate in a market-based manner.
Neither the small-scale net metering VIR nor the large scale bidding program can be considered a traditional “feed-in tariff.” A traditional feed-in tariff sets a rate of payment for generation and offers a standard contract for the purchase of the energy. This approach creates an incentive for surplus generation and operates without a net metering or bidding process.
Photo 5: The 419 kW DC PV array at the City of Gresham Waste Water Treatment Plant, which is currently the largest ground-mounted installed solar array in Oregon.
Oregon’s Historic Solar Connection
On April 25, 1954, two Oregonians helped invent the solar electric or photovoltaic (PV) cell and created a revolution in the renewable energy field. Daryl Chapin and Gerald Pearson graduated from Willamette University in Salem and went on to work at Bell Telephone Labs in New Jersey. Pearson was born in Salem in 1905.
The two men, along with Calvin Fuller, were originally searching for a solution to battery problems within the Bell telephone system when they discovered the solar electric cell. The scientists helped create the first solar cell capable of generating enough power from the sun to run everyday electrical equipment.
Wind
While wind energy in Oregon continues to be the leading electricity-producing renewable resource, it lags far behind conventional hydroelectricity production. By 2009, the U.S. Department of Energy’s Energy Information Administration reported that wind energy production in Oregon constituted 4.4 percent of Oregon’s total net generation and over 75 percent of the total “non-hydroelectric” sources of renewable energy. Due to the variable nature of wind, the turbines generate, on average, about a third of the maximum output or capacity.
Most of Oregon’s wind development takes place primarily in the central and eastern Columbia River area and in northeastern Oregon. Wind farm proposals of 105 megawatts (MW) and above go through Oregon’s Energy Facility Siting Council (EFSC) process. Developers of less than 105 MW may also choose to go through EFSC, considered a one-stop process with appeals of decisions going directly to the Oregon Supreme Court. Of the more than 20 current operational wind farms in Oregon, about 75 percent have a capacity below the EFSC 105 MW threshold and were approved at the county land use process.
The first Oregon wind farm, Vansycle, began operating in 1998 at 25 MW. Current operational wind projects are located mainly in Sherman, Gilliam, Morrow and Umatilla counties and offer a total capacity of nearly 2,100 MW.
Oregon Wind in the News
Many articles have been written calling Oregon home to the world’s largest wind farm, Shepherds Flat. This is actually three separate facilities with three site certificates issued by the Oregon Energy Facility Siting Council. Shepherds Flat North was approved with a capacity of up to 318 megawatts (MW), South and Central were approved for up to 290 MW each.
Earlier in 2010, Shepherds Flat made national headlines when the Pentagon said that the proposed wind turbines might interfere with its radar site in Fossil. With no permit from the Federal Aviation Administration, there would have been no wind farms. The Department of Defense later dropped its
opposition to the project.
Oregon added the most wind capacity (175 MW) of any state in the country during the third quarter of 2010, according to a report issued by the American Wind Energy Association3. While Texas still leads in overall installed capacity, many developers there are waiting for additional transmission lines. Oregon is also home to the North American
headquarters of wind turbine manufacturer Vestas and to wind farm operator Iberdrola Renewables.
Photo 6: Wind Energy in northeast Oregon (D.A. Black)
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